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Rewards for spot liquidity providers are earned through two ways:
- 1.Fees earned from swap fees (spread) and maker rebates
- 2.Liquidity rewards derived from block rewards (when LP tokens are committed)
When depositing liquidity to perp pools, you receive CLP tokens that represent the share of your liquidity in the perp pool. They accrue value natively through several ways:
- Trader's losses; Traders who realized losses when trading against the perp pool
- Funding fees; Traders pay funding fees, which are comparable to interest rates.
- Maker rebates; Traders act as market makers and in return receive a rebate for providing liquidity to be taken by traders.